La Poste gets backing for price rises of more than 5% a year

THE French postal service, La Poste, has been given the green light to increase the price of its services in the coming years.

Regulatory body, l'Autorité de régulation des communications électroniques et des Postes (Arcep), has agreed to an average increase of the inflation rate plus 3.5% per year for the next four years - which at present would mean a 5.2% price hike.

There is no detail on whether stamps, parcel deliveries or other products will be hit by the price rises, but La Poste has been hit by a dramatic slide in the use of its services.

The volume of post fell by 4.3% a year between 2008 and 2012, while last year the amount fell by 5.5%.

And with La Poste facing increased competition especially in the delivery of parcel, and the possible opening up of postal deliveries via the EU, postal chiefs are looking to increase revenue to pay for changes in the service.